Shelly 
The market continued to be “happy” in the new year, gaining ,more than 2 percent in the week ended January 14 amid buying seen across the sectors led by power, realty sectors and mid-smallcap stocks.
The Sensex gained 1,478.38 points (2.47 percent) to end at 61,223.03, while the Nifty added 443.1 points (2.48 percent) to close at 18,255.8 levels in the last week.
Among sectors, the BSE power index added 7.4 percent, capital goods index rose 6 percent, realty index added nearly 5 percent and the information technology index up 3 percent.
Broader indices perform in line with main indices, with BSE midcap and smallcap indices rising 2-3 percent.
More than 100 smallcap stocks gained between 10 and 47 percent. These included Gujarat Mineral Development Corporation, Ajmera Realty, Greaves Cotton, Deepak Fertilizers, BCL Industries, Kellton Tech Solutions, Urja Global, Vikas Lifecare, Dollar Industries, India Nippon Electricals, Prakash Pipes, Jagran Prakashan, MEP Infrastructure Developers, Trident, Indo Rama Synthetics (India), Varroc Engineering, Gulshan Polyols and Kanoria Chemicals and Industries.
On the other hand, GNA Axles, BGR Energy Systems, Shriram EPC, Hikal, Mahanagar Telephone Nigam, Kilpest India and Vishwaraj Sugar Industries fell 8-25 percent.
“The winning streak of market was put to a halt on Friday (January 14) . However, we saw some buying in quality counters in small-cap space. In coming days, we expect movement in markets to be sector specific. However midcap and smallcap space will show good move in coming days,” said Rahul Sharma, Co-owner, Equity 99.
“Overall, the market outlook looks positive and one should look to keep add quality stocks in their portfolio. Traders should trade into sector specific stocks, keep booking their profit and trail strict stop loss.”
The BSE midcap index added 2.4 percent with Adani Power, RBL Bank, Indian Hotels Company, Federal Bank, Container Corporation of India, Hindustan Aeronautics, Mahindra & Mahindra Financial Services, Canara Bank, Bharat Heavy Electricals and Oberoi Realty rising 7-16 percent.
The BSE 500 index rose 2.5 percent with Greaves Cotton, Deepak Fertilizers, Trident, Varroc Engineering, Adani Green Energy, Adani Power, Sequent Scientific, Gujarat Heavy Chemicals and RBL Bank gaining 15-31 percent.
“Technically, the Nifty50 has been trading in a bullish trend from the last couple of days without enabling a selling pressure that indicates a bullish trend. On the daily chart, the recent candle has engulfed the last two days of candle and closed near the day high,” said Sachin Gupta, AVP- Research at Choice Broking.
The index has also been hovering above the Ichimoku Cloud formation with the positive cross line. A momentum indicator RSI and Stochastic has also indicated a positive crossover, he said.
“At present, the index has support at 18,100 levels, while resistance comes at 18,350 levels, crossing above the same can show 18,500-18,600 levels. On the other hand, the Bank Nifty has support at 37,800 levels, while resistance at 38,800 levels,” Gupta added.
Where is Nifty50 headed?
Vishal Wagh, Research Head, Bonanza Portfolio
Going ahead, 18,000-18,080 will be good short-term support for upcoming trading sessions and on the upside, 18,340 will act as new immediate resistance.
Traders will be keenly watching the upcoming budget session as they position themselves for the volatility and would be even booking profits before the big event. The broad structure of the index still remains in favour of bulls.
Amol Athawale, Deputy Vice President-Technical Research, Kotak Securities
The texture of the market is bullish but due to an overstretched rally, the market could consolidate between 18,050 and 18,375. For the bulls, 18,375-18,400 would be the immediate hurdle and above the same, the same breakout formation will continue up to 18,500.
On the flip side, 18,150 would be the sacrosanct support level to watch out for. If the index succeeds to close below the same, the Nifty could retest 18,050-18,000 levels.
The Bank Nifty has completed one leg of correction and took support near the 9-day SMA. The structure suggests 38,000 and 37,500 would act as strong support zones. Above the same, the uptrend momentum will continue till 39,000-39,300.
Ruchit Jain, Lead–Research, 5paisa.com
Looking at the chart structure, we believe the up move is not complete yet. In spite of some sluggishness in the index towards the end of the week, the stock-specific action was positive and we saw good buying interest in the broader markets. Hence, one should continue to trade with a positive bias and trade with a buy-on-dip approach in the coming week.
With rise in the index levels, option writers are continuously focused on writing higher strike price put options and now, 18000 put option has attracted maximum open interest.
This indicates that the support base for the short term is now around 18,000 and any dip towards this support should be used as a buying opportunity. On the higher side, 18,400-18,500 would be the immediate range to look out for.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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